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Does liability insurance follow the driver of a rented vehicle or the renter of the rented vehicle?
Wiki User
∙ 11y ago
Usually, the (existing) auto insurance that the renter has on himself - will "follow" the vehicle. One would hope that said renter has full coverage including comprehensive & collision coverage (and not just "liability") coverage when renting a vehicle. Otherwise, a smashed or damaged rental would be the renters responsibility. All of this assumes that the renter did not purchase insurance coverage from the rental car company.
If the renter of the vehicle let another driver use the rental car and that new driver was not listed on the rental form -- then their insurance (the 2nd driver's) would become "secondary." That is, if a liability claim arose and the original renters coverage was inadequate to cover the damages from the claim -- then the driver at the time of the accident would find that his insurer might have to pay something to the party that was hurt to satisfy the total claim amount. If a rental driver maims a plastic surgeon, he may get a judgement for $3 million. Most drivers do not have that level of liability coverage. Hence, the secondary coverage. If both coverage's combined cannot satisfy the claim, then the surgeon could come after the renter and the driver and he will obtain a judgment against the personal assets of the renter and the driver. I have seen folks that have had their paychecks garnished for 35 years -- to satisfy a debt due to an accident and their inadequate insurance. A simple way to protect yourself (if you have any assets) is to purchase an "umbrella policy." Hulk Hogan sued his agent for not recommending an umbrella policy - after his son was involved in an accident that resulted in death. He won in court. Google the terms: "Hulk Hogan and umbrella policy lawsuit."
At least that is the way it is in Missouri. All 50 states have their own laws when it comes to insurance. However, the question of coverage following the driver is pretty well accepted.
Wiki User
∙ 11y ago
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What is nonowner auto liability insurance?
This is a type of auto liability coverage that can be purchased when the buyer does not own an automobile. While auto liability insurance is typically said to "follow the car", meaning that it correlates with a particular vehicle, non-owner's coverage "follows the driver". In that sense, it covers the driver irrespective of the vehicle he/she is driving.
In ma if you drive someone else's car and get a ticket who will have their insurance affected the driver or the owner of the vehicle?
Always remember insurance follows the vehicle and points follow the driver. So if they get points from the ticket it will follow the driver.
Can you use uninsured car insurance towards your car if you don't carry collision?
An Uninsured car has no insurance. Your liability coverage may follow you to it if it is a replacement vehicle but would not cover damage to the uninsured vehicle.
Does insurance follow the driver or the automobile?
Insurance follows the driver.
Does California auto liability follow auto or driver?
auto
Does auto insurance follow the car of the driver in new jersey?
Primarily the auto insurance policy follows the car. Secondarily it covers the driver should he be driving an uninsured vehicle or to cover him on a borrowed vehicle. There are some restrictions based on primary vehicle replacement and other situations. Read your policy for specific information.
Does auto insurance follow the driver or the car in CA?
It depends on your insurance and where you are from.
Do I need to insure my car if I have drivers insurance?
It is uncertain what you mean by "driver's insurance". There is a kind of liability insurance called "non-owners coverage" that is often required under a state's Financial Responsibility Law when an individual has been in an at-fault collision, did not have the required liability coverage and when the other party's damages exceeded a stated amount, or when an injury occurs. It is also sometimes required when a judgment is entered against an individual for an auto collision and the judgment remains unsatisfied. Non-owners coverage generally will "follow the driver" irrespective of the vehicle that he or she is driving. Non-owners coverage provides no coverage for the vehicle itself such as for its repair or replacement in the event of a collision.
Does insurance follow the car or the person?
Depends on the insurance policy. A good one will cover both, as long as the driver has permission to drive the car, and the policy owner can cover a rental or a new vehicle.
Can you drive an insured car if you have no insurance?
Driving another persons insured CarIt is always best to ask the owner loaning you the vehicle if you will be covered under his policy. If he is not sure then he should contact his Insurer and verify before you drive. It never hurts to have your own operators or non owners policy in place for additional security if your an occasional driver without a car right now. Each US state regulates it's own insurance needs through it's state legislature. Insurance for a loaner would depend on the type of Policy that the Vehicle owner currently has in place as required in that state. It could also depend on the nature of the vehicle loaned or hired. If the Owner has a Limited Liability or a Named Driver Policy then no other drivers may be covered even with permissive use. If the owner has purchased a Broad Form Auto Insurance Policy then generally permitted drivers are covered.It is a common misnomer that Auto Liability follows a vehicle. In Fact, Auto Liability Insurance covers and follows the named insured(s) (usually the vehicle owner) and the named insureds legal liability that may arise out vehicle ownership and operation. Most liability coverage will even follow the defined insured to a replacement vehicle, When on a standard form auto insurance policy, liability coverage is afforded even when tertiary or third party through an accident of a permitted driver. This point of concept of vicarious legal liability of a property owner and the contracted liability of the Specific Policy Form offered by an Insurance Company is where the misunderstanding arises. Limited lines Policies though economic can leave gaps in coverage so it's best that all drivers even non owners carry financial responsibility.The Concept definitions of Legal Liability of the owner of a property and the Financial Responsibility of all vehicle operators on public roads is determined further in the US by the regulations of the individual state of registration.AnswerAccording to law if the owner of the vehicle has insurance on the vehicle, and "loans" you the car, and you are listed as an occasional driver of that vehicle, then you are covered. Otherwise, you will have to purchase your own policy. Dependent DriversBe careful. The answer to your question varies from state to state and you need to check the laws in your state. In the state where I live, an under 25 driver who lives with you must be insured on your policy to drive your car and it's very expensive. Insurance coverage is different if someone who does not live with you uses the car for your convenience. It can get very complicated. Insurance companies are doing more and more to mitigate rising costs of repairs, medical treatment and their liability.
Does auto insurance follow the car or the driver in Arizona?
Auto insurance covers the Named Insured(s) for certain losses that may arise out of vehicle operation or ownership. Bear in Mind that the notion of Auto insurance following a car or a driver is lay-mans language. An insurance professional should never use such broad terms when explaining coverage as it is an misleading over simplification of the coverage and would not be accurate. Regardless of what state your in, sometimes your auto insurance will follow you to another vehicle and sometimes it will cover other drivers that you permit to drive your vehicle, but it all depends on the circumstances involved.
Your adult daughter has auto insurance and is gifting you her car you have a car and insurance She lives with you Do you have to put her on your insurance policy?
As long as she has her own policy on her own, it would not affect your insurance in the sense of premium or the need to have her insured on your policy. However, most auto insurance company want to have her listed as a driver in the household since she lives with you. The policy actually follow the vehicle and not the driver. If she was to drive this vehicle and get into an accident, your policy would be the primary and her policy would be secondary.
